FORGING AHEAD - Tradewinds Plantation Berhad

4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.5 Property development activities
(a) Land held for property development
Land held for property development is stated at cost less accumulated impairment losses, if any. Such land is
classified as non-current asset when no significant development work has been carried out or where development
activities are not expected to be completed within the normal operating cycle.
Cost associated with the acquisition of land includes the purchase price of the land, professional fees, stamp
duties, commissions, conversion fees and other relevant levies.
Land held for property development is reclassified as property development costs at the point when development
activities have commenced and where it can be demonstrated that the development activities can be completed
within the normal operating cycle.
(b) Property development costs
FINANCIAL STATEMENTS
Property development costs comprise all cost that are directly attributable to the development activities or that
can be allocated on a reasonable basis to such activities. They comprise the cost of land under development,
construction costs and other related development costs common to the whole project including professional fees,
stamp duties, commissions, conversion fees and other relevant levies as well as borrowing costs.
Interest costs incurred on financing the development of the projects are capitalised and included as part of
development expenditure.
The Group considers as current assets that portion of property development expenditure on which significant
development work has been done and which is expected to be completed within the normal operating cycle.
Property development costs not recognised as an expense are recognised as an asset measured at the lower of
cost and net realisable value.
When revenue recognised in profit or loss exceeds progress billing to purchasers, the balance is classified as
accrued billings under current assets. When progress billings exceed revenue recognised in profit or loss, the
balance is classified as progress billings under current liabilities.
TRADEWINDS PLANTATION BERHAD
Annual Report 2010
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